In Re Sitkin Smelting & Refining, Inc., Bankrupt. Wesgo Division of Gte Products Corporation v. G.M. Harrison, Etc.

RONEY, Circuit Judge:

This case presents a single issue: whether the bankruptcy court erred in holding that scrap material in the possession of a bankrupt metal refiner should be given to a secured creditor of the refiner rather than to the seller of the scrap. This turns on the correctness of the court’s findings of a contract for sale rather than a bailment. We affirm.

Prior to its bankruptcy, Sitkin Smelting and Refining was in the business of processing industrial waste for the recovery of precious and base metals. Sitkin had an agreement with plaintiff WESGO Division of GTE Products…